Got this inspiration while reading another book (Invest Like a Shark by James Deporre).
My current profitable trade in Brightoil (933.hk) has seen quite a fair amount of profit. I think I will try this method to establish my stop loss levels once the current one placed yesterday expires this evening.
My current profitable trade in Brightoil (933.hk) has seen quite a fair amount of profit. I think I will try this method to establish my stop loss levels once the current one placed yesterday expires this evening.
My second open trade in Yuhua (2728.hk), while (slightly) profitable, is tying up quite a fair portion of my total portfolio. As such, I've tightened up my stop loss to $1.02 (quite substantial with little leeway for any price decrease) to get out.
Youyuan (2268.hk) was my previous trade that I closed at $1.77. If I had used this method instead, I would have been stopped out at $1.795 due to the long lower shadow on 31 Mar. Otherwise I would have still been in the running for this share.
However, if we look at Jimei (1159.hk), the very first stock that I bought that stopped me out on the very same day, the stock volatility would have easily kicked me out of the trade as the price penetrates the 30-EMA levels too frequently.
